The Cost Effect of Productivity for Variable Costs Is Calculated

question 103

Multiple Choice

The cost effect of productivity for variable costs is calculated by multiplying the difference in actual input units used to produce current year output and units of input required to produce current year output in previous year by the ________.

• A) price per input unit of previous year
• B) price per unit of capacity in the previous year
• C) price per unit of capacity in the current year
• D) price per input unit of current year

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Definitions:

Decades

Periods of ten years.

Continuous

Uninterrupted in time, sequence, substance, or extent; without cessation or gaps.

Discontinuous

Characterized by interruptions or gaps, not having a steady or unbroken progression.

Multidimensional

Characterized by involving or having several dimensions or aspects.